Question: Using the martingale approach in the single-period binomial model, find the optimal portfolio strategy for maximizing E[log(X(1)] and E[X|(1)= ], for < 1.

Using the martingale approach in the single-period binomial model, find the optimal portfolio strategy for maximizing E[log(X(1)] and E[Xγ|(1)= γ], for γ < 1.

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